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Ep. 96 – Vinturas – finished vehicle supply chain on the blockchain
This week we’re joined by the CEO of Vinturas, Jon Kuiper. Jon was the former head of Koopman Logistics Group and has years of experience as a senior executive and a CEO in the Finished Vehicle Logistics (FVL) industry. He joins us to talk about how Vinturas is using blockchain technology to revolutionise the FVL industry.
What is blockchain?
Jon Kuiper explains what blockchain technology means in the FVL industry. Blockchain technology or distributed ledger technology allows Vinturas to create an infrastructure which fosters collaboration between FVL companies and all other stakeholders in the ecosystem. This in depth collaboration allows for a single source of truth amongst all players in the FVL ecosystem, which in turn can bring huge benefits for all network participants.
The finished vehicle logistics industry
According to The Association of European Vehicle Logistics, Finished Vehicle Logistics (FVL) are the activities that take place after a new vehicle leaves the factory until the point when it reaches the customer. The FVL industry is a highly specialised sub-section of the transportation industry with dedicated storage warehouses and skilled drivers to ensure smooth delivery without damages to the high-value product.
FVL is part of the automotive logistics market which according to a study by Global Market Insights is valued at over USD 115 billion in 2018 and is estimated to grow to USD 170 billion by 2025.
The key 3 challenges in the finished vehicle supply chain industry
Supply chain visibility
In 2017 Supply Chain Worldwide Survey surveyed 623 supply chain professionals across 17 different countries and concluded that only 6% of firms were able to offer any type of supply chain visibility. This, more than ever presents a huge problem across supply chains which need to be addressed.
Complexity
The finished vehicle supply chain is very complex and the complexity is only increasing. Cars can be transported from the original equipment manufacturer (OEM) through potentially 4 modes of transport road, rail, maritime and river before it reaches the car dealership further increasing the complexity. FVL often spans different countries and these countries have their regulations and rules which will need to be abided to. Also, it’s not one firm which controls the whole supply chain. Products are often passed between 3 or 4 LSP’s in the supply chain before it reaches the car dealership creating multiple handover points between different logistic service providers.
Customer demands
Amazon certainly leads the way in producing extremely efficient supply chains having spent billions in R&D in the last 20 years perfecting their supply chain. The ‘Amazon Effect’ has meant that expectations of supply chains in many industries have risen in recent years. Now consumers expect shorter delivery times, are less tolerant of mistakes or late deliveries. Importantly customers expect to know where their product is and how long it’ll take to reach them so like Jon Kuiper says they ...
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By Walid Al Saqqaf - Blockchain insuranceThis week we’re joined by the CEO of Vinturas, Jon Kuiper. Jon was the former head of Koopman Logistics Group and has years of experience as a senior executive and a CEO in the Finished Vehicle Logistics (FVL) industry. He joins us to talk about how Vinturas is using blockchain technology to revolutionise the FVL industry.
What is blockchain?
Jon Kuiper explains what blockchain technology means in the FVL industry. Blockchain technology or distributed ledger technology allows Vinturas to create an infrastructure which fosters collaboration between FVL companies and all other stakeholders in the ecosystem. This in depth collaboration allows for a single source of truth amongst all players in the FVL ecosystem, which in turn can bring huge benefits for all network participants.
The finished vehicle logistics industry
According to The Association of European Vehicle Logistics, Finished Vehicle Logistics (FVL) are the activities that take place after a new vehicle leaves the factory until the point when it reaches the customer. The FVL industry is a highly specialised sub-section of the transportation industry with dedicated storage warehouses and skilled drivers to ensure smooth delivery without damages to the high-value product.
FVL is part of the automotive logistics market which according to a study by Global Market Insights is valued at over USD 115 billion in 2018 and is estimated to grow to USD 170 billion by 2025.
The key 3 challenges in the finished vehicle supply chain industry
Supply chain visibility
In 2017 Supply Chain Worldwide Survey surveyed 623 supply chain professionals across 17 different countries and concluded that only 6% of firms were able to offer any type of supply chain visibility. This, more than ever presents a huge problem across supply chains which need to be addressed.
Complexity
The finished vehicle supply chain is very complex and the complexity is only increasing. Cars can be transported from the original equipment manufacturer (OEM) through potentially 4 modes of transport road, rail, maritime and river before it reaches the car dealership further increasing the complexity. FVL often spans different countries and these countries have their regulations and rules which will need to be abided to. Also, it’s not one firm which controls the whole supply chain. Products are often passed between 3 or 4 LSP’s in the supply chain before it reaches the car dealership creating multiple handover points between different logistic service providers.
Customer demands
Amazon certainly leads the way in producing extremely efficient supply chains having spent billions in R&D in the last 20 years perfecting their supply chain. The ‘Amazon Effect’ has meant that expectations of supply chains in many industries have risen in recent years. Now consumers expect shorter delivery times, are less tolerant of mistakes or late deliveries. Importantly customers expect to know where their product is and how long it’ll take to reach them so like Jon Kuiper says they ...